Arm wrestling for the blues prices!
Article by Diego Castagnasso, fresh produce and blueberry expert. Loud, opinionated, INFORMED! Diego, writes DC's B-Side newsletter like he talks and talks like he writes.
Let’s Recap...
I was talking about 3 main options that would be cleared up in the next few weeks.
Right now we have a bit more info and at least the curve went slightly down from last week if we guide ourselves by the Pro-arandanos curve.
So either a shoulder or a plateau are the more clear scenarios moving forward.
Having said that we are looking at a different "movie" today…
Remember Stallone’s “Over the Top” or Halcon if you speak Spanish.
It is the story of an arm wrestler… who competes against really big guys and wins…
Producers, Importers, resellers, and Retailers are acting their parts in this movie
But instead of using their arms, they are using prices…
Producers are resisting to put the prices down…
Why?
…because the supermarkets want to start with promos NOW and not in a few weeks when the fruit from the peak arrives.
by that time, they want more people buying… and they are putting more pressure on the fruit that has already arrived.
This is happening in all the markets, in some with more pressure than others, and that depends mostly on how long it takes for the fruit to arrive at its destination.
Prices for all the fruit went down during Fruit Attraction and again there is more pressure to do the same after the Global Produce and Floral Show in Atlanta.
Although we are not seeing the effects yet in the US market.
For example, in Europe importers (in general) were looking for prices closer to €6/7 kg FOB while exporters were pressured to keep the prices at €8/9 kg FOB.
So the game is on!!
How low will the price go?
Will the producers recover like Stallone from the pressure with the over-the-top trick?
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Have a Great Week!!!
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PS: Stallone wins, yes but not after having almost lost! Is always good to remember that.
PS1: I understand retailers... but if I try to do the same and tell them the price of the “apples” is going to be cheaper in a couple of weeks, why don't they give me a discount now instead of the next week...
I don't think they will!!
PS2: The numbers are real but, bear in mind, that there are many differences if the fruit is in Spain, the UK, Holland, or Poland. Also, the size and the variety are important. That is why FOB prices give a better idea although there are variances as well, as you can see in the graph.
Oh! The market pressure is high right now, so changes will move fast.
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